Wright Medical Technology to Pay $7.9 Million to U.S.

Sept. 30 (Bloomberg) -- Wright Medical Technology Inc.
agreed to pay $7.9 million to resolve U.S. criminal and civil
investigations into whether it paid kickbacks to induce doctors
to use its hip and knee devices.

Prosecutors in Newark, New Jersey, today charged Wright
with conspiring to violate a federal anti-kickback statue
through consulting contracts with orthopedic surgeons. The U.S.
agreed to drop the case in 12 months if a monitor agrees that
Wright has reformed the way it hires consultants.

Wright, based in Arlington, Tennessee, also agreed to a
$7.9 million civil settlement with the Justice Department and
inspector general of the Health and Human Services Department to
resolve fraudulent-marketing claims. The company entered into a
five-year corporate integrity agreement.

“The deferred prosecution agreement and monitor oversight
will hold Wright to a high ethical standard,” First Assistant
U.S. Attorney J. Gilmore Childers said in a statement. “We are
committed to the continuing investigation and prosecution of
both companies and individuals who enter into illegitimate
consulting relationships.”

The alleged crimes took place from 2002 through 2007. The
monitor will be James B. Tucker, former U.S. attorney for the
Southern District of Mississippi.

Criminal Charge

The government agreed to defer prosecution if they paid
more than $310 million and made reforms. The cases ended in
2009.

“We are pleased to announce these agreements and look
forward to working with the independent monitor as we continue
our commitment to the highest standards of ethical and legal
conduct,” Wright Medical Chief Executive Officer Gary D. Henley
said in a statement.

“Patients in federal health care programs deserve the best
available treatment from physicians and surgeons without the
corrupting influence of kickbacks,” Tom ODonnell, special agent
in charge of New Jersey for Health and Human Service’s inspector
general, said in a statement.